Rent the Runway, Inc.RENT

Rent the Runway, Inc. Earnings Per Share Disclosure

10-KFiled Apr 15, 20252 min read
Net Loss per Share Attributable to Common Stockholders
The Company computes net loss per share attributable to common stockholders under the two-class method required for multiple classes of common stock and participating securities. The rights of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the net loss per share attributable to common stockholders will be the same for Class A and Class B common stock on an individual or combined basis.
The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders, adjusted on a retroactive basis to reflect the Reverse Stock Split as discussed in Note 12, Stockholders’ Equity:
Year Ended January 31,
202520242023
Numerator:
Net loss attributable to common stockholders
$(69.9)$(113.2)$(138.7)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
3,776,633 3,418,382 3,212,746 
Net loss per share attributable to common stockholders, basic and diluted
$(18.51)$(33.12)$(43.17)
The following potentially dilutive outstanding securities based on amounts outstanding at each period end, adjusted on a retroactive basis to reflect the Reverse Stock Split as discussed in Note 12, Stockholders’ Equity, were excluded from the computation of diluted loss per share attributable to common stockholders because including them would have been anti-dilutive:
Year Ended January 31,
202520242023
Stock options
33,538 42,613 402,756 
Common stock warrants
131,574 131,574 131,574 
RSUs333,899 404,965 298,722 
Total
499,011 579,152 833,052 

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew Standards